Please help Will rate Suppose that in a recent market period

Please help. Will rate.

Suppose that in a recent market period, an industrywide survey determined the relationship between the price of prerecorded movie DVDs and the quantity supplied and quantity demanded shown in the table below and depicted in the graph at right. Quantity Demanded Quantity Supplied Price $16 $17 $18 $19 $20 120 million 110 million 100 million 90 million 80 million 60 million 80 million 100 million 120 million 140 million 24 So 0 Suppose that a survey for a later market period indicates that the quantities supplied in the table are unchanged, but the quantity demanded has increased by 30 million units at each price 1.) Using the multipoint curve drawing tool, draw and label the new demand curve for movie DVDs. Properly label this line 50 70 90 110 130 50 170 Output 2.) Using the point drawing tool, indicate the new equilibrium point. Label it \'E

Solution

1) demand increase which leads to shift in demand curve paralelly rightward. Thus shift the demand curve such that new demand curve have intercept 170 on quantity axis and should intersect price axis at Price=26.

2) demand has increased

We know equilibrium is at a point wherr demand=supply or demand and supply intersect.

When you will make new demand curve then you will see that it will cut supply curve at equilibrium Price=19 and equilibrium quantity=120

Yes, increase in number of buyer will increase the demand

No, decrease in cost will shift the supply curve rather than demand curve.

Yes, Increase in income will shift the demand curve rightward.

No, curve will not shift however there will be upward movement along the curve.

No, supply curve will shift rightward.